(RTTNews.com) - Automotive supplier Continental AG (CTTAY.PK) Thursday reported higher profit and revenue for the second quarter and lifted its full year forecast, backed by lower raw material costs.

Germany-based Continental said net income attributable to shareholders of the parent increased to 520.3 million euros from 314.8 million euros in the prior year.

Sales advanced to 8.19 billion euros from 7.53 billion euros in the prior-year quarter.

Operating result or EBIT climbed 30 percent to 842.8 million euros. Adjusted EBIT jumped 26 percent to 948.3 million euros.

The company operates two business groups: Automotive Group and Rubber Group. In the Automotive Group, sales increased 8 percent to 4.937 billion euros and EBIT improved 22 percent to 300.8 million euros.

Sales at the Rubber Group grew 9 percent to 3.256 billion euros and EBIT jumped 37 percent to 556.6 million euros.

For the first half of the year, net income attributable to shareholders of the parent climbed nearly 47 percent to 1 billion euros. Sales improved 10.9 percent to 16.5 billion euros.

Looking forward, the company currently expects an increase in full-year consolidated sales of more than 7 percent to over 32.5 billion euros. Further, adjusted EBIT margin is expected to top the level achieved in 2011 due to slightly lower negative impact from raw material costs.

The previous projection was for sales to increase by more than 5 percent to over 32 billion euros and to match the previous year's high adjusted EBIT margin.

Continental Executive Board Chairman Elmar Degenhart said, ''Based on the successful first half of the year, we are confident that we will comfortably achieve the goals we have set for the year.''

Back in 2008, Schaeffler Group bought over Continental AG at 72 euros, the stock is currently adding 13 percent at 81.4 euros, which the  Schaeffler Group has made an excellent job in helping  Continental AG's powertrains division to be profitable again within the last few years. Analyst has forecasted that  Continental AG is going to reach at least 100 euros.

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